Islamabad, Pakistan: In a significant decision, the Supreme Court directed the transfer of Rs35 billion from the Bahria Town settlement, previously remitted to the apex court’s accounts, to the federal government. This move came during the proceedings of the Rs460 billion Bahria Town Karachi settlement case, presided over by a bench comprising Chief Justice Qazi Faez Isa, Justice Aminuddin Khan, and Justice Athar Minallah.
The court further instructed the National Bank of Pakistan (NBP) to transfer this sum to the government and provide confirmation to the court registrar.
Chief Justice Isa, following a prolonged hearing, emphasized that the March 21, 2019, Supreme Court judgment mandated the payment, and with no response from most parties issued notices, retaining the amount or any accrued mark-up would be unjust.
Previously, on Oct 20, a three-judge bench had issued notices to several individuals and entities regarding remittances totaling approximately Rs35 billion, stemming from amounts of about 136 million pounds and about $44 million transferred from abroad.
Among the entities issued notices were Mashreq Bank, London; Fortune Event Limited and Emirates Dubai, UAE; Mubashara Ali Malik, Bina Riaz, and Sana Salman, UAE; Ultimate Holdings MGT LTD, British Virgin Islands; Premier Investments Global Ltd, UAE; Ahmed Ali Riaz, UAE; Premier Investments Global Ltd, UAE; and Wedlake Bell LLP, London, UK.
However, only Mashreq Bank responded through counsel Rashid Anwar, citing compliance with a freezing order from the Westminster Magistrate Court London, directing remittance of 19.9 million pounds to the Supreme Court registrar’s accounts.
In 2019, the UK’s National Crime Agency recovered around 190 million pounds from the family of Bahria Town owner Malik Riaz, repatriated to Pakistan. This sum was later transferred to the Supreme Court following claims by the real estate magnate that it was intended to fulfill the Rs460 billion land acquisition payment for a housing scheme in Karachi.
According to Shahzad Akbar, former head of the Assets Recovery Unit, 140 million pounds were transferred initially, with the remaining 50 million pounds expected from the sale of 1 Hyde Park, a property owned by Malik Riaz, which was eventually sold and remitted to Pakistan.
Per the Supreme Court’s directive, after transferring Rs35 billion to the federal government, the remaining amount will be deposited into the Sindh government’s account.
Despite claims by Bahria Town’s representative Salman Aslam Butt regarding a payment of Rs65 billion, it remains uncertain if the Rs35 billion remitted from abroad is part of this claimed amount.
The court highlighted the housing scheme’s obligations, with a down-payment of Rs25 billion and subsequent monthly installments, warning of serious consequences for non-compliance, potentially involving references by the National Accountability Bureau (NAB).
During the proceedings, Butt argued about the possession of lesser land by Bahria Town due to utilization for various projects, which was contested by the Sindh advocate general, emphasizing excess land possession by the housing scheme based on a survey conducted.
The court expressed concerns about the scheme’s unilateral actions and suggested complicity of officials in the matter, urging action from the provincial government. Additionally, it raised questions about laws governing land allotments by private housing schemes and highlighted the need for protective measures for allottees, expressing confidence in the provinces to enact necessary legislation for record-keeping of allotted lands.
